Checks

Efforts by community banks to convert to an all-image check-clearing environment are almost complete. In 2011, 87 percent of the community banks deposited their cash letters electronically, and 4 percent planned to implement image cash letter deposit by 2013, according to The ICBA 2011 Community Bank Payments survey. The remaining 8 percent had no plans to implement the process before 2013. Additionally, 89 percent of community bankers polled said they received their cash letters electronically, 3 percent planned to implement image cash letter receipt by 2013, and the remaining 9 percent had no plans to implement the process before 2013, according to the survey. According to that survey the community banks that did not plan to adopt image cash letter deposit (8 percent) and receipt (8 percent) would have been subject to the eroding service levels and higher costs associated with paper check clearing and generally had $250 million in assets or less.

ICBA strongly supports the Federal Reserve’s proposal for paying banks to have the prerogative to require that all same‐day settlement presentments be delivered electronically and urges adoption of clarifications regarding paying banks’ same‐day settlement requirements in an electronic presentment environment.

ICBA recognizes and supports the Electronic Check Clearing House Organization (ECCHO) rules for electronic check presentment and check image exchange, and the NACHA Operating Rules for the ACH network and check conversion.

ICBA promotes check electronification by raising banker awareness, providing banker and customer educational resources, and identifying the necessary steps community banks can take to effectively prepare and respond to processing changes.